Examples of using Split payment in English and their translations into Romanian
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Persons required to apply the VAT split payment system.
Webcast“VAT split payment- Impact for business”| 11 August.
Deloitte Events: Interactive seminar- The VAT split payment.
The VAT split payment mechanism was approved by the Government.
Amendments and clarifications regarding the VAT split payment system.
VAT split payment system, mandatory from 1 January 2018.
The following categories of taxable person are not obliged to perform split payments.
We cannot split payments to multiple individuals or members of a partnership.
For more details and registration,please access this link: VAT split payment.
VAT split payment- the amendments to the final form of the law, sent for approval to the President.
On 18 August, the Ministry of Public Finances(“MFP”)updated the draft Ordinance on the VAT split payment.
On the basis of the notification regarding the option of VAT split payment(D086), the tax body shall issue and communicate ex officio.
The VAT split payment mechanism was approved without any substantial amendments compared to the updated Project of the Government's Ordinance, published on 18 August 2018(presented in our tax alert of 21 August).
Order no. 2927/13 October 2017(hereinafter“the Order”) regarding the application of the VAT split payment system has been published in the Official Gazette.
Regarding taxable persons who choose to apply the VAT split payment mechanism after January 1, 2018: they will benefit of a 5% reduction of the corporate income tax/ income for the entire period of applying.
OTP Bank Romania SA offers you the possibility to open current accounts for the VAT split payment, adding the following benefits.
Register of persons applying the VAT split payment", which will include the list of taxpayers applying the scheme.
With regard to companies subject to insolvency law at the end of 2017,they will fall within the scope of the VAT split payment mechanism as from 1 March 2018.
Romania will have to take action on the VAT split payment mechanism, otherwise the infringement procedure may continue.
The Order details the procedure and conditions for the approval of requests for VAT amount transfers from dedicated VAT accounts to current accounts(under Ordinance no. 23/2017 regarding the VAT split payment mechanism) in specific cases, as follows.
The law for approving the Ordinance regarding the VAT split payment was approved by the Chamber of Deputies and sent for approval to the President.
Optional split payment(Q.31): the Committee finds it difficult to understand the reasons for a split payment system as proposed in the first model in Point 5.4.1 of the Green Paper; it feels that requiring a double payment for every transaction would mean more complicated accountancy and greater scope for error.
The most important amendment refers to the application of the VAT split payment system only by the companies having VAT debts or in insolvency.
Entities with State Treasury accounts for receiving and making VAT split payments will be able to use electronic multiple payment orders(EMPO) to make payments to other VAT accounts, i.e. either for the payment of VAT to the state budget or for the payment of VAT to supplier.
Therefore, the obligation to pay the VAT equivalent of the purchases of goods and services in a special VAT account of the supplier orsupplier applying the VAT split payment mechanism will only be reimbursed to companies registered for VAT purposes.
(23) The Commission will further analyse the feasibility of the split payment and its design in order to allay the concerns expressed, with a view to deciding on the appropriate follow-up at a later stage.
The year 2019 shows, however, more provocative for Romania,given that in November 2018 the European Commission sent to our country a formal notice on the VAT split payment mechanism, requesting it to cease its application, thus making the first step towards triggering the infringement procedure.
For more details andopening a current account for the VAT split payment, we invite you to any of the territorial units of OTP Bank Romania SA.
Entities with State Treasury accounts for receiving and making VAT split payments will be issued electronic account statements(in PDF and XLM format), free of charge.
OTP Bank Romania SA offers you the possibility to open current accounts for the VAT split payment, adding the following benefits: FREE of charge VAT account opening,… I want details OTPdirekt.
